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May 16, 2002
Kawasaki Kisen Kaisha, Ltd.

New Management Plan Named "KV-Plan"

Kawasaki Kisen Kaisha, Ltd. (hereunder referred to as "K" LINE or the Company) takes pleasure in announcing that we have mapped out and started in April this year a new management plan. The plan's name is "KV-Plan" that is going to be carried out for three years from Fiscal 2002 through Fiscal 2004. As we previously reported to you, "K" LINE was determined to put an end to the 5-year management plan named "New "K" LINE Spirit for 21 (New K-21)" in its 4th year at the end of Fiscal 2001 in view of various huge changes to management circumstances. KV-Plan is aimed not only to take over New K-21 but also for us to tackle new imminent assignments with speed in the harsher and tougher management circumstances surrounding the shipping industry.

In KV-Plan, we will give top priority to recovery of achievement of containerships business that has greatly worsened due to the huge drop in freight rate level. In this recognition, we will stage an all-group-level campaign for cost curtailment named "Cost Slash-300". As compared with Fiscal 2001, we set a cost-reduction goal at ¥30 billion for three years to come. Accomplishing KV-Plan, the Company will upgrade global cost competitiveness of its entire group still further and strengthen ever more its constituent so that we may shield ourselves from exterior worsening influence of the management circumstances and ensure constant and stable payment of dividends. When and if the global economy recovers, we will try to realize a V-shaped recovery in overall business achievement.

The numerical targets of KV-Plan at the end of Fiscal 2004 are as follows:(actual figures of Fiscal 2001 in parentheses)

(Unit: Millions of Yen)

Consolidated (Fiscal 2001) Non-consolidated (Fiscal 2001)
Operating revenues 650 (571) 500 (449.2)
Operating income 40 (19) 27 (8.3)
Ordinary income 35 (12) 24 (7.1)
Net income 20 (4.8) 13 (2.8)
Precondition of exchange ¥130 per U.S. $
Precondition of bunker price U.S.$ 140 per ton (Fiscal 2002)
U.S.$ 130 per ton (Fiscal 2003 and 2004)

For more details, kindly refer to attached material.

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